1.FHFA: Leadership Overhaul and Accountability Moves

FHFA Director Bill Pulte announced that staffing reductions at the agency have already exceeded 25%, surpassing expectations set by the Department of Government Efficiency (“DOGE“). This move reflects a broader push to streamline operations and reestablish stronger accountability within the federal housing finance system. The cuts are being positioned as part of a cultural reset at FHFA, aimed at tightening oversight and improving performance across the board.

In a separate but related development, FHFA issued a press release confirming that more than 100 employees at Fannie Mae have been terminated for unethical behavior, including involvement in fraudulent activity. These terminations have occurred since Director Pulte took office in mid-March and represent one of the most sweeping internal cleanups in recent memory. In a televised interview, Pulte added that some of the employees in question were reportedly living in China, although he offered few additional details due to the ongoing nature of the investigation.

Together, these actions suggest that FHFA is undergoing significant structural and cultural shifts, with a renewed focus on rooting out misconduct and aligning personnel with the agency’s updated vision for governance and integrity.

2.FHA: New Technology and Clarifications for Streamline Refinances

On the FHA side, progress is being made to modernize systems and improve digital integration. FHA announced the release of its Catalyst Partner Environment—an Application Programming Interface (“API“) testing platform. Starting April 14th, lenders and Loan Origination System (“LOS“) providers will be able to begin testing the Case Binder B2G API, a step forward in increasing automation and improving workflows for FHA-approved mortgagees that rely on proprietary systems or LOS vendors. The Catalyst initiative is part of FHA’s broader goal to enhance efficiency and bring its platforms in line with industry standards for technology and interoperability.

In addition to system updates, FHA released new guidance this week through its FAQ platform, offering important clarifications for borrower eligibility in non-credit qualifying streamline refinance transactions. Specifically, FHA reaffirmed that non-permanent residents are not eligible for these types of refinances. However, the agency clarified that a borrower may still proceed with a streamline refinance if they are eligible and their spouse—who is a non-permanent resident—is not on the loan. These clarifications echo previous interpretations and are intended to ensure lenders are accurately assessing eligibility in compliance with FHA guidelines.

3.What It Means for Brokers and Lenders

These updates reflect a broader theme across federal housing agencies: streamlining operations, reinforcing accountability, and investing in modern infrastructure. At FHFA, a leadership-driven push to restore integrity and efficiency is already reshaping internal personnel structures and increasing scrutiny on the government-sponsored enterprises. Meanwhile, FHA continues to make strides in digital transformation and clarify loan eligibility standards, providing greater transparency for lenders.

For brokers and loan officers, these developments highlight a few key takeaways. First, expect a continued focus on fraud prevention and internal controls—particularly in the wake of high-profile firings at Fannie Mae. Second, lenders that are positioned to integrate with FHA Catalyst will be better equipped to leverage automation in their loan processing workflows. And finally, accurate understanding of borrower eligibility—especially regarding immigrant borrowers and non-permanent residents—remains essential to ensuring compliance and avoiding issues during audits or reviews.

We’ll continue tracking how these changes evolve and what they mean for your day-to-day operations and long-term compliance strategy.